Nevada-based casino operator Boyd Gaming Corporation entered into a definitive agreement to purchase an iGaming software and services supplier owned and operated by the Pala Band of Mission Indians.
‘At the Forefront in Creating Online Gaming Platform’
Pala Interactive, a North American supplier of software and services, founded by the Pala Band in 2013 and active on both B2B and B2C basis in regulated markets across the US and Canada, will be acquired by Boyd Gaming in total cash consideration of $170 million.
“Our tribe was at the forefront in creating an online gaming platform. We brought together the best minds in the business to build and ultimately transact, what has become a very successful business.”
Robert Smith, Chairman, the Pala Band of Mission Indians
The brand that is majority-owned by the Californian tribe developed an online technology business with operations in real money and social gaming, providing a player management system, casino, poker, integrated sports, social casino, and poker platforms, as well as a full suite of managed services.
North American-Tailored ‘Modern-Age’ Platform and Business
Commenting on the definitive agreement for the sale of Pala Interactive, the brand’s chief executive officer Jim Ryan outlined the sale was “the result of a considerable capital investment and lot of hard work” on behalf of both the Pala Band and Pala Interactive employees, who worked hand in hand “to build a modern-age online gaming platform and business tailored to the North American regulated gaming market.”
“Boyd Gaming’s acquisition of the Pala Interactive business, positions the enterprise for the next growth phase, which includes the development and execution of an iGaming strategy for Boyd Gaming and a continued commitment of investment and development in Pala’s B2B business.”
Jim Ryan, CEO, Pala Interactive
The Pala Band gaming brand is currently active in eight US gaming jurisdictions on a B2B basis, as well as in Canada, and is offering its products on a B2B2C basis in New Jersey and Canada, but the factor which influenced the hand of Boyd Gaming was the recently obtained Ontario Gaming Related Supplier (GRS) Manufacturer License.
Ontario is expected to formally launch its market on April 4 and securing the license positioned Pala Interactive for further growth in the Canadian market and attracted the interest of the New York Stock Exchange (NYSE)-listed casino operator.
The Pala Band and Boyd Gaming expect to close the transaction by the first quarter of 2023, subject to customary closing conditions, including regulatory review and approval.
Pala Interactive used the services of Brownstein Hyatt Farber Schreck as its legal advisor for the transaction.